One of the leading rail freight carriers, CSX Corporation (CSX) has started construction of its Quebec Intermodal terminal, which is expected to begin operations in 2015. The $107 million project is expected to facilitate CSX in tapping business opportunities from shippers resorting to intermodal rail between Montreal and Quebec City.
Given the growing importance of rail intermodal, rail infrastructural development has been the focus of all investments undertaken by the railroads. In 2012, another major railroad, Norfolk Southern Corp (NSC), sought expansion plans worth $2 billion within its territory.
Norfolk’s expansion strategies were fueled mostly by the development of the energy sector, including the gas exploration projects in Marcellus and Utica shale plays as well as ventures associated with coal and power generation. Over the coming years, it plans to introduce 32 energy-related projects in 14 states under its service areas.
Coming back to the recent development, apart from CSX, rail freight carriers like Canadian National Railway Co (CNI) and Canadian Pacific Railway Ltd (CP) have also undertaken terminal and capacity development. While Canadian National collaborated with Indiana Rail Road Company to set up an intermodal terminal in Indianapolis, Canadian Pacific started operations in its latest intermodal terminal at Saskatchewan's Global Transportation Hub in Regina.
All these recent events only lead to the fact that railroads are experiencing growth in their intermodal services. We expect all these investments to remain accretive over the long term, supporting volume growth. However, given the current economic backdrop, these investments can likely weigh on the margins until there is a significant improvement in market fundamentals that will drive revenues upward.
Fernando, I'm assuming that you are young. After reading your post, I'm not surprised if you are unemployed.
You write at a third grade level, your spelling and grammar are really, really, bad. Apparently the school system was too busy teaching you 'self respect' and what a great person you are, instead of teaching you basics that you'd need for later life.
And, by the way, the teachers and their unions don't give one whit about you or your fellow students, they only care about their pay/retirement/benefits packages. And now they've unloaded someone like you into the real world, without the necessary skills to cope.
And pathetic people everywhere are demanding that governments fix their problems. Hey, how about taking 'personal responsibility' for your problems and fixing them yourself.
Lionel, if I owned 20,000 shares of ERF that would make my annual divvy payout a over $20,000. And Canada would tax that amount at a 15% rate, Canada would get $3,000 in taxes, far above the $300-$600 that I could recover using a standard tax credit. Furthermore, filing a Form 1116 does NOT get back the full amount of credits for the amount of taxes you pay over $300-$600. There is double taxation, now two ways around it. Canada gets 15% and the US gets 15% and that's a big chunk going to taxes.
So I will increase the number of shares of ERF that I own, but only in my retirement account, where Canada doesn't tax it at all.
As I stated in my original post, I'd like to purchase more shares of ERF, but only with the stipulation that I'm not double-taxed on the dividends. And from your posts, and from further investigation on my part, I've come to the conclusion that ERF dividends are double-taxed when held outside a retirement account.
But I have come up with a solution. I have some cash set aside to buy stocks. I will use that money to buy shares of Apache Corp stock (symbol APA). Simultaneously, I will sell an equal number of shares of APA in my retirement account and use the proceeds to buy shares of ERF, in my retirement account. Using this method, I will be able to own the same amount of APA shares while adding to the number of ERF shares in my retirement account; thus avoiding double-taxation on my new ERF shares.
I thank all the posters on this board for their input.
And view these corrections as buying opportunities. COP investors can do this by having their dividends reinvested in to more COP shares. Also, COP investors don't have to worry about market corrections because they have solid dividend payouts/income to see them through the corrections.
I live in the USA and am a US citizen. I currently own shares of ERF in my 401k plan. But I would like to purchase more shares, outside of my 401k. But if I do buy shares outside a retirement plan, I have heard that both Canada and the US would tax my dividends. Is that true? Thank you.
Occidental Petroleum Corp. (NYSE:OXY): Closing price $90.48
Occidental Chief Executive Steve Chazen advised investors this week that his firm might think about divesting its overseas assets or splitting into three separate entities so as to fund a stock repurchase and improve its share price. During a conference hosted by UBS in New York on Wednesday, Chazen said that selling assets to shrink the size of the company might be necessary in order for shareholders to obtain greater value from the oil and gas producer. One the scenarios Occidental is considering is the sale of its Middle Eastern unit, which includes onshore and offshore oil and gas projects in Qatar and Oman, said UBS.
◾ The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Oil, Gas & Consumable Fuels industry average. The net income increased by 1.1% when compared to the same quarter one year prior, going from -$189.62 million to -$187.50 million.
◾ In its most recent trading session, LINE has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
I know that the Street isn't a reliable reference/analyst for stocks. But they have upgraded LINN and at least that's good publicity. Hopefully, the attention will move LINE and LNCO.
NEW YORK (TheStreet) -- Linn Energy (Nasdaq:LINE) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
◾ LINE's very impressive revenue growth greatly exceeded the industry average of 1.5%. Since the same quarter one year prior, revenues leaped by 377.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
◾ Net operating cash flow has significantly increased by 539.70% to $206.48 million when compared to the same quarter last year. In addition, LINN ENERGY LLC has also vastly surpassed the industry average cash flow growth rate of 20.12%.
◾ LINN ENERGY LLC has improved earnings per share by 23.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LINN ENERGY LLC swung to a loss, reporting -$1.86 versus $2.21 in the prior year. This year, the market expects an improvement in earnings ($1.48 versus -$1.86).
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